Siemens Energy Stock Slips Despite Record Orders, Goldman Conviction, and a Data Center Land Grab

Siemens Energy posts 41.5% grid order surge, but stock slides 17%. Goldman sees opportunity, Moody's upgrades outlook. Data center demand drives future growth.

The numbers are hard to argue with. Siemens Energy’s Grid Technologies division booked nearly €7 billion in orders during the fiscal second quarter, a 41.5% year-on-year surge. Revenue in the unit climbed 12.3% to €3.067 billion, while management is targeting full-year comparable sales growth of 25% to 27% and an operating margin of 18% to 20%. The group as a whole raised its free cash flow forecast to roughly €8 billion before taxes and expects 14% to 16% revenue expansion.

Yet the stock has done little but slide since late April. From an all-time high of €191.66, shares have retreated more than 17%. On Wednesday they traded at €160.48, a modest 1.84% recovery that barely dented the recent sell-off. The seven-day drop alone approached 10% — a move that looks divorced from any fundamental deterioration.

Management is on the offensive. This week the board is touring Europe, with stops in Munich, Copenhagen, and Stockholm after kicking off the roadshow on June 2 at the Berenberg Innovation Seminar in Zurich. Alongside the investor meetings, Siemens Energy is also appearing as a patron sponsor at the Datacloud Global Congress in Cannes, where it is pitching its gas turbines, transformers, and grid infrastructure to hyperscale data center operators.

That pitch already has teeth. A quarter of all orders in the Gas Services division now come from data center projects. In the second quarter alone, Siemens Energy booked 5 gigawatts of orders from the segment — out of a total 12 GW — with clients including AWS, Microsoft, and Google. The company estimates that data centers could consume 4% of global electricity generation by 2030, a structural demand wave that benefits both Grid Technologies and Gas Services.

Goldman Sachs sees a buying opportunity. The bank added Siemens Energy to its European Conviction List – Directors' Cut earlier this month. Analyst Ajay Patel argues that the company is a structural winner in the AI era and expects its 2030 operating profit to come in 10% above the consensus. He believes the next annual results will see medium-term targets raised and fresh shareholder payout plans announced, building on the already declared €6 billion buyback program running through 2028.

The credit rating agency Moody’s added its own vote of confidence in late May, affirming the Baa1 long-term rating and lifting the outlook from stable to positive, citing improved credit metrics.

Investors may simply be waiting for a clearer catalyst. Order backlog visibility is high: 93% of the second half of the current fiscal year is already covered by contracts, and 80% of fiscal 2027 is booked. But with the stock hovering just above its 100-day moving average of €159.70 and the relative strength index at a neutral 41, the near-term direction is uncertain. A decisive break above the 50-day average of €168 could reignite momentum.

Time is tight. The quiet period before third-quarter results — due August 5 — begins July 1. Before that, the roadshow continues, and on June 17 the company will present at the J.P. Morgan European Industrials Conference. For now, the market is watching to see whether the Goldman Sachs endorsement and the data center order haul are enough to arrest the slide — or whether this is simply a consolidation phase after a 59% run-up earlier in the fiscal year.